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News:Recently,the Central Board of Direct Taxes(CBDT) has notified rules for furnishing Country-by-Country Report(CbC) specifying information pertaining to all large multinational enterprises(MNEs).
Facts:
About Country-by-Country Report:
- The BEPS Action 13 report provides the multinational enterprises(MNEs) to report annually and for each tax jurisdiction in which they do business the information set out therein.This report is called the Country by Country(CbC) Report.
- India has signed the Multilateral Competent Authority Agreement (MCAA) for exchange of CbC reports.
What does the report contain?
- The report aggregates country-by-country information relating to the global allocation of income,taxes paid and certain other indicators of an MNC.
- It also contains a list of all the group companies operating in a particular jurisdiction and the nature of the main business activity of each such constituent entity.
Additional information:
About MCAA:
- The Multilateral Competent Authority Agreement(MCAA) is a multilateral framework agreement under OECD / G20 BEPS Project.
- It provides a mechanism to facilitate the automatic exchange of information in accordance with the Standard for Automatic Exchange of Financial Information in Tax Matters.
About Base Erosion and Profit Shifting (BEPS):
- BEPS is a term used to describe tax planning strategies that exploit mismatches and gaps that exist between the tax rules of different jurisdictions.
- It is an OECD initiative approved by the G20 to identify ways of providing more standardised tax rules globally.
